Avelo Airlines, a carrier that has been among a select few providing deportation flights for the United States government, has announced it will terminate its work with U.S. Immigration and Customs Enforcement (ICE) later this month.
CEO Cites Financial Instability and Political Controversy
In an internal email to employees reviewed by CNBC, Avelo CEO Andrew Levy explained the decision. The airline moved part of its fleet into a government program that promised more financial stability but ultimately placed the company "in the center of a political controversy." Levy stated that while the program offered short-term benefits, it failed to provide enough consistent and predictable revenue to justify its operational complexity and high costs.
In a nuanced clarification, Avelo spokesperson Courtney Goff told WHYY that the company never held a direct federal contract for deportation flights. Instead, it acted as a subcontractor for CSI Aviation. CSI Aviation holds the primary contract with ICE, valued at up to $585 million from the Department of Homeland Security, and it runs through next month.
Flights Operated Under the Radar
As part of an investigation last fall, HuffPost journalists observed shackled immigrants disembarking from an Avelo aircraft at Newark Liberty International Airport. To obscure its involvement, the plane, with tail number N801XT, along with a second Avelo plane (N804VL) spotted in Denver, had been repainted white, removing all prominent Avelo branding.
The airline's involvement had drawn public criticism, including a protest by approximately 150 people at Tweed New Haven Regional Airport in Connecticut in April.
Operational Shift Leads to Base Closures and Job Cuts
The cessation of the ICE flying program has direct consequences for Avelo's operations and workforce. According to the Avelo flight attendant union, the airline is closing its crew bases in Mesa, Arizona; Raleigh-Durham, North Carolina; and Wilmington, North Carolina, resulting in job losses.
Despite the negative impact on jobs, the union strongly supported the decision to end the controversial flights. "This is exactly what we told management from the beginning ― ICE flying would be bad for the airline!" the union wrote in a message to members. It expressed hope that, with the end of the ICE operations and new financing, the future would be more stable for Avelo flight attendants.
The union further noted that the airline industry is inherently dynamic, but Avelo had faced "far too much change," including operating flights that employees did not originally sign up for.
Avelo's final flights for the U.S. government's deportation program are scheduled for January 27.
